GBP/USD made a recovery against the loss during early Friday. While doing so, the quote enjoys the recent recovery in the market sentiment.

Market sentiment is boosted as hopes of further stimulus join the Fed’s strong rejection of reflation fears. Also adding the optimism in the market sentiment is the US President Joe Biden’s push for faster vaccinations and upbeat US data.

The data published by the US Department of Labor showed on Thursday that the weekly Initial Jobless Claims dropped to 684,000 in the week ending March 20, the lowest reading since the beginning of the pandemic. Additionally, the US Bureau of Economic Analysis revised its fourth-quarter GDP growth to 4.3% from 4.1%.

China has sanctioned organizations and individuals in the United Kingdom over what it called “lies and disinformation” about Xinjiang, after Britain imposed sanctions for human rights abuses in the western Chinese region. This has served to be factor in boosting the GBP/USD bull.

A British diplomat shared the news that the nation’s export of meat and seafood to the bloc nations recovered in February against the January slump.

The comments from the Confederation of British Industry (CBI) suggesting expectations for retail sales turning positive in March for the first time since December 2019 added to the optimism. 

As per Reuters, Britain pledged a further 1.5 billion pounds ($2.06 billion) in tax relief for companies hit by the coronavirus crisis but which until now had not qualified for exemption from paying business rates, a charge based on the value of commercial property. The move comes on top of the 16 billion pounds in business rates relief already paid to or earmarked for retail, hospitality and leisure businesses.

GBP/USD 4 Hour Chart:

Support: 1.3691 (S1), 1.3643 (S2), 1.3615 (S3).

Resistance: 1.3766 (R1), 1.3793 (R2), 1.3841 (R3).

All the catalysts favors Britain pound against the American dollar and traders will now keep an eye on the Britain Retail sales data. We expect a bullish trend for GBP/USD.